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Construction Risks Newsletter - August 2019

Published 25 agosto 2019

DAC Beachcroft's Construction Risks Newsletter features topical issues in construction.

Welcome to the August version of DACB’s construction risks newsletter.  Adjudication case law still dominates the Construction Court’s work, with a number of new pieces of law.  In this edition we review the cases concerning the excluded items pursuant to the Construction Act.  Another issue that the industry faces is the VAT reverse charge, our tax team provide some guidance.

ALL CHANGE! The VAT domestic reverse charge is about to arrive.

STOP PRESS. HMRC has announced that the introduction of the VAT reverse charge will be delayed by 12 months in response to a concerted campaign by a coalition of construction associations. 

The VAT reverse charge is scheduled to be introduced 1 October 2019, it will present a significant change to the way VAT is dealt with in the construction industry and those who it will affect are advised to take steps now to ensure their accounting functions are ready for the new rules...READ MORE


The High Court considers an
adjudicator's Decision and a
failure to correctly interpret
a contract

In Willow Corp S.A.R.L. and MTD
Contractors Limited
[2019] EWHC
1591 (TCC), an adjudicator incorrectly
decides an issue which is easy to identify,
important, and severable from the rest
of his decision, the losing party may use
a Part 8 claim for declaratory relief as a
way of resisting enforcement
proceedings...READ MORE

The Court of Appeal provides
guidance on the proper
interpretation of clauses exempting
liability for loss or force
majeure clauses

Classic Maritime Inc v Limbungan Makmur
[2019] EWCA Civ 1102, 2019 WL
02617095. Classic Maritime issued a claim
against a charterer (Limbungan) for its failure
to supply five shipments of iron ore pellets
from Brazil to Malaysia...READ MORE


Identifying the 'primary activity'
on-site - Engie Fabricom UK Ltd
v MW High Tech Projects UK Ltd

[2019] EWHC 1876 (TCC)

In Engie Fabricom UK Ltd v MW High Tech
Projects UK Ltd
, the Court refused to enforce
an adjudicator’s decision because it found
that the Defendant had reasonable prospects
of showing that the primary activity of the site
in question was power generation, and
consequently that the parties' sub-contract fell
within the section 105(2) exclusions in the
Housing Grants Construction and Regeneration
Act 1996 (“the Act”)...READ MORE

Trading names and Adjudication
referrals - can a jurisdictional
challenge succeed? 


In MG Scaffolding (Oxford) Ltd v Palmloch Ltd
[2019] EWHC 1787 (TCC), the Defendant
argued that the Notice of Adjudication
incorrectly named the responding party
and so was invalid - therefore, the Adjudicator
lacked jurisdiction to make a decision...READ MORE



A warning to residential occupiers -
when can the exemption against
adjudication be thwarted? 

The recent decision of the Technology and
Construction Court (TCC) in ICCT Ltd v Pinto
[2019] EWHC 2134 (TCC) demonstrates
circumstances in which residential occupiers
may find themselves bound by an adjudication
decision, even where they haven’t
agreed to it...READ MORE

Claim Deadlines for
Collateral Warranties

The case of Swansea Stadium Management Co
Ltd v City & County of Swansea Interserve
Construction Limited
[2018] EWHC 2192
(TCC) serves to remind the beneficiaries of
collateral warranties to be alert to deadlines
for issuing claims under these securities...READ MORE


Occupational Stress in the
Construction Sector

In 2018, 82,000 cases of ill-health were
reported in the construction sector.
25% of those cases related to mental
ill-health including stress, anxiety
and depression...READ MORE











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Mark Roach

Mark Roach

London - Walbrook

+44 (0)20 7894 6314

Rebecca Austin

Rebecca Austin

London - Walbrook

+44 (0) 20 7894 6729

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